®
Steve MillsSenior VP and Group ExecutiveIBM Software and Systems
March 23, 2011
Smarter Computingwith IBM System z
2© 2011 International Business Machines Corporation
Smarter Computing: System z Analyst Summit
Smarter Planet Solutions Increase Demands on IT
but IT budgets are growing less than 0.8% per year
1.2 zettabytes (1.2 trillion GB)exist in the “digital universe
50% YTY growth25% of data is unique; 75% is a copy
Data centers have doubledtheir energy use in the past five years
Internet connected devices growing 42% per year
85% idle computer capacity15% of servers run 24/7 without being actively used on a daily basis
Between 2000 and 2010 …servers grew 6xstorage grew 69x
Virtual machines growing42% per year
18% increase in data center energy costs projected
32.6M servers worldwide
3© 2011 International Business Machines Corporation
Smarter Computing: System z Analyst Summit
IT Operating Costs are Out of Control
Worldwide IT Spending on Servers, Power, Cooling and Management Administration
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012$0
$50
$100
$150
$200
$250
Source: IDC
35
0
5
10
15
20
25
30
40
45
50
SpendingUS$ (B)
Power and cooling costsServer mgmt and admin costsNew Server spending
Physical Server Installed Base
(Millions)
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Smarter Computing: System z Analyst Summit
Resulting Sprawl Drives Unsustainable Costs
Cost to Manage Growth of Inventory Consumes
IT Budget
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Smarter Computing: System z Analyst Summit
Strategies to Reduce Costs and Improve Value
ApplAppl ApplAppl
Consolidate Hardware Infrastructure
Eliminate Redundant Software and Data
Improve Service Delivery
Optimize the Overall IT Environment
CompressDeduplicateIntegrateArchive
ApplAppl ApplAppl ApplAppl ApplApplSOA
Cloud Computing
Integrated Service Management
Visibility AutomationControl
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Smarter Computing: System z Analyst Summit
Meeting These Challenges
Smarter Computing
Leading clients are already addressing this IT conundrum through:
Strategies to transform IT to deliver breakthrough economics and valueStrategies to transform IT to deliver breakthrough economics and value
7© 2011 International Business Machines Corporation
Smarter Computing: System z Analyst Summit
IBM Internal IT Infrastructure Evolution
Sprawl Consolidated
VV
VV
VV
VV Private Cloud
Public Cloud
Integration
Smarter Computing
Service Pooling
VV
VVVV
VVVV
ServicesServices
IT Simplification
Comprehensive virtualizationEnsembles and scalable serversConverged networks
Service Oriented ArchitectureEnd-to-end service managementCloud computing services
Key Technologies
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Smarter Computing: System z Analyst Summit
IBM IT Transformation = Cost Savings
Consolidated and virtualized over 3,900 server images onto 30 System z mainframes
80% less energy used
85% less floor space …a 16,500 sq. ft. reduction
Cumulative benefit yield of $ 4.1B over the last 5 yrs
1997 TodayHost Data Centers 155 7
Web Hosting Centers
80 5
Network 31 1Applications 15,000 4,700
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Optimize Server Utilization
Reduce Server Sprawl
Reduce # of Data CentersConsolidate ServersServer VirtualizationAsset Management
Manage Workloads
Workload Optimized Systems – Best Fit
Automate Processes
Automation ProvisioningWorkload Scheduling
Optimize Service Delivery
Integrated Service Management (ISM)
Self-provisioned Cloud Services
zEnterpriseHybrid workload
consolidation
Delivers the lowest cost per workload for the widest variety of
workloads
Example of IBM Solution
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Smarter Computing: System z Analyst Summit
zEnterprise
Centralized management of heterogeneous resources for simplification and resiliencyUnifies management of resources, extending IBM System z qualities of service end-to-end across workloads
The Next generation of mainframe technology, more performance, more scale, more efficientOptimized to host large scale database, transaction, and mission critical applications
Integrated IBM POWER7 blades and IBM x86 BladesHigh performance optimizers and appliances to accelerate time to insight and reduce cost
IBM zEnterprise 196 (z196)IBM zEnterprise 196 (z196) zEnterprise Unified Resource ManagerzEnterprise Unified Resource Manager
zEnterprise BladeCenter Extension (zBX)
zEnterprise BladeCenter Extension (zBX)
11© 2011 International Business Machines Corporation
Smarter Computing: System z Analyst Summit
IBM zEnterprise Provides a New Dimension in Cloud Computing
Rapid ElasticityA new dimension of Scale. Most efficient platform for Large-scale Linux consolidation
Broad Network AccessVery large number of end user access from multiple sources including mobile devices
On Demand Self-ServiceAutomate provisioning and service requests reducing provisioning cycles from weeks to minutes
Unified management for a smarter system:IBM zEnterprise
Unified Resource Manager (zManager)
The world’s fastest and most scalable system:
IBM zEnterprise™ 196 (z196)
Scale out to a trillion instructions per second:
IBM zEnterprise BladeCenter®
Extension (zBX)
Measured ServiceMeter, monitor, and track workloads for chargebacks and capacity expectations
Resource Pooling1000s of virtualized systems across a heterogeneous resource pool
12© 2011 International Business Machines Corporation
Smarter Computing: System z Analyst Summit
Syst
em z
Har
dwar
e M
anag
emen
t Con
sole
(HM
C)
with
Uni
fied
Res
ourc
e M
anag
er
zBX
Select IBM Blades
Blade HW Resources
Optimizers
IBM
Sm
art A
naly
tics
Opt
imiz
er
z HW Resources
z/OS
z/TPFz/VSETM
Linux onSystem z
Support Element
Linuxon
System z
z/VM
Private High Speed Data Network IEDNPrivate Management Network INMNUnified Resource
Manager
Private data network (IEDN)
1 All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represents goals and objectives only.
Customer Network Customer Network
System z Host
Linux on System x 1
AIX on POWER7
Dat
aPow
er1
Futu
re O
fferin
g
Futu
re O
fferin
g
Blade Virtualization Blade Virtualization
System z PR/SM™
A Look Inside the zEnterprise System
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Smarter Computing: System z Analyst Summit
IBM zEnterprise Lowering TCO of Distributed Workloads Through Optimal Platform Selection
Optimize distributed work on zEnterprise with Linux on System z, POWER7 blades and Intel blades with Unified Resource Manager
Current data center:
Distributed workloads on a variety of Intel servers, connected to a System z
• Based on IBM analysis of a large Financial Services company Datacenter. See details on ibm.com/systems/zenterprise/• Deployment configurations based on IBM studies and will vary based on workload characteristics. Price calculations based on publicly available US list prices, prices will vary by country.
Lower cost of acquisition by up to 56%*
Reduce cost of ownership by up to 55%*
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The Cost of Duplicating a 2TB Database
EnterpriseWAN
Duplicated Data
$2,826System z CPU cost ETL$1.38/GB x 2048 GB
$9System z ETL Labor$9.33/job
$1,188System z CPU cost FTP $0.58/GB x 2048 GB
$12,042System z Storage Admin$5.88/GB/yr x 2048 GB
$6System z FTP Labor$5.88/job
$25,252Cost of storage for send file$12.33/GB x 2048 GB
$53,207Distributed Storage Admin$12.99/GB/yr x 2048 GB x 2 copies
$14Distributed ETL Labor$14.00/job
$96Distributed CPU cost FTP $0.05/GB x 2048 GB
$799Distributed CPU cost ETL$0.39/GB x 2048 GB
$61,112Cost of storage for receive file and data mart$14.92/GB x 2048 GB x 2 copies
$1,188Off Premises Network$0.29/GB x 2048 GB x 2 hops
$20On Premises Network $0.0024/GB x 2048 GB x 4 hops
Annual Additional Infrastructure Costs
$151,613
Cost per Transfer
$6,146
2TB 2TB
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Annual Costs of Duplicating 3 Data Marts Off Platform
Original Data Duplicated Data
Duplicate once per day
Cost of Duplication(3 marts, once per day, 1 year)
$12,042Storage admin z
$1,406,085Off premise network
$3,969,331CPU cost ETL z and Dist
$550,011Additional Dist Storage
$1,322,213On premise network
$159,621Storage admin Dist
$1,046,378Labor ETL
$263,725Labor FTP
$8,754,659TOTAL
$25,252Additional z Storage
$37,294TOTAL
Original System z Storage Costs (1 year)
$12,042Storage administration
$25,252Cost of original storage
EnterpriseWAN
2TB
2TB
2TB2TB
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Deploy on Intel Best Fit on z Enterprise25 heavy workloads
240 heavy I/O Workloads
235 light workloads
664 total network parts$0.2M TCA
Additional network parts16
switches340
cables308
adapters
21 total network parts$0.03M TCA
Additional network parts1
switch10
cables10
adapters
Network configuration is based on IBM internal studies. Prices are in US currency, prices will vary by country
zEnterprise Reduces Network Cost and Complexity
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SAP Applications Cost 20% Less on zEnterprise
z196zBX
z196T3-1B
Upgrade to new
SPARC T3
$1.2M3yr TCA HW+SW
POWER Blades in
zBX
$0.97M3yr TCA HW+SW
20% Less20% Less20
SPARC T544032 core servers
538,120 total SAPs
640 cores total
$3.4M
z196
38 SPARC T3-1B Blades in SUN Rack608 cores total
23 POWER7 Blades in zBX
184 cores total
20 front-end SAP applications on older SPARC T2+ servers
20 Workloads20 Workloads
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Running Web Front End Workloads Cost 58% Less
z196zBX
POWER Blades in
zBX
$4.9M3yr TCA HW+SW
58% Less58% Less
z196 WebSphere Application Server
28 POWER7 Blades2 DataPower X150z
in zBX224 cores total
Competitive Application Server57 SPARC T3-1B
Blades in SUN Racks2 HP DL380 Servers
(for ESB)936 cores total
z196T3-1B
Upgrade to new
SPARC T3
$11.7M3yr TCA HW+SW
28SPARC T5440
32 core servers2 HP DL380 Servers
(for ESB)
$23.7M
DL380
28 Workloads each driving
1,975 tps
28 Workloads each driving
1,975 tps
28 front-end applications on older SPARC T2+ servers
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Linux on z196 is the Most Efficient Platform for Large-scale Consolidation
Lower acquisition costs of hardware and software vs. distributedservers – 74% less than Nehalem*Less than $335 per year per virtual server (TCA)*Reduce floor space by up to 90% compared to distributed servers*Reduce labor costs by up to 70% compared to distributed servers
Distributed server comparison is based on IBM cost modeling of Linux on zEnterprise vs. alternative distributed servers. Given there are multiple factors in this analysis such as utilization rates, application type, local pricing, etc., savings may vary by user.
*
Consolidate 40 Oracle server cores onto 2 Linux cores on zEnterprise Consolidation on System z
$0.0
$0.5
$1.0
$1.5
$2.0
New X86 z10 z196
US$
Mill
ions
Hardware MaintenanceHardwareSoftware Service & Support Software OTC
39% less than Nehalem
74% less thanNehalem
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zEnterpriseBroadest Architectural Support for Private Clouds
Linux on System x Blades*
AIX on Power Blades
Appliance Blades
Linux on System z
z/OS
z/OSz/OS z/VMz/VM AIXAIX
WorkloadWorkload WorkloadWorkload WorkloadWorkload WorkloadWorkload WorkloadWorkload
LinuxLinux
zEnterprise z196 zEnterprise BladeCenter Extension (xBX)
Fit-for-Purpose Strategy
Achieves overall lowest cost per
workload
Integrated Service Management
Assign workloads to the environment that best satisfies requirements
VisibilityControlAutomation
Linux Image
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Public versus Private CloudWhich Option Costs Less for Delivering Mixed Workloads?
Public Cloud
Private Cloud
400 Workloads
400 Workloads
408 Workloads
408 Workloads
42 Workloads
42 Workloads
Light workloads with heavy I/O
Light Intel workloads
Heavy Unix workloads
850 workloadszEnterprise
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Compare Server Cost of Acquisition
400 Workloads
400 Workloads
408 Workloads
408 Workloads
42 Workloads
42 Workloads
Public Cloud
Private Cloud
Deployed on Public Cloud Best Fit on zEnterprise
zEnterprise32 IFL’s,
7 Intel Blades, 13 POWER Blades192 cores
$7.5M TCA (3years)
850 Compute Instances
$48.5M TCA (3years)
Server configurations are based on consolidation ratios derived from IBM internal studies. Prices are in US currency, prices will vary by country
84% Less84% Less
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Public Cloud
Compare Labor Cost for Three Years
400 Workloads
400 Workloads
408 Workloads
408 Workloads
42 Workloads
42 Workloads
Private Cloud
Deployed on Public Cloud Best Fit on zEnterprise
18,115 labor hours / year8.71 administrators
$4.17M3 years@ $160K per year
18% Less18% Less
11,806 labor hours / year5.67 administrators
$3.44M*3 years@ $160K per year
Configuration based on IBM internal studies. Labor model based on customer provided data from IBM studies. Labor rates will vary by country*Includes acquisition costs for zManager and Tivoli
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Fit-for-Purpose Private Cloud on zEnterpriseDramatic Reduction in Costs
Three Year Cost per Workload / Image
(US$)
Light Intel Workloads
$44.6K
$9.2K
Heavy UNIX Workloads
$242K
$72.4K
Workloads with Heavy I/O
$79.4K
$15.3K
Public cloud
Private cloud with zEnterprise
Source: IBM internal study. zEnterprise configurations needed to support the three workload types were derived from IBM benchmarks. Public cloud sizing needed to support the three workload types was calculated based on compute capacity of public cloud services. 3 yr TCO for public cloud calculated using web-based calculator made available by the service provider. 3 yr TCO for zEnterprise includes hardware acquisition, maintenance, software acquisition, S&S and labor. US pricing, prices will vary by country.
79% lower overall TCO79% lower overall TCO
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Smarter Computing: System z Analyst Summit
Accurate Cost Allocations Show a True Picture of Costs and Aid Investment Decisions - an example:
Typical Allocation –Management Estimates
Best Practice Allocation –Actual Costs
Distributed % Mainframe % Distributed % Mainframe %Power Cost 0 0 $15,084 100 $11,917 79 $3,167 21
Labor Cost 0 0 $350,000 100 $210,000 60 $140,000 40
Floor space 0 0 $11,620 100 $6,300 54 $5,320 46
Software OTC depreciation $120,240 60 $102,472 40 $216,194 97 $6518 3
Software S&S and MLC $168,783 50 $168,783 50 $181,242 54 $156,325 46
Hardware OTC depreciation $103,691 25 $311,074 75 $184,435 44 $230,330 56
Hardware Maintenance $20,276 25 $60,829 75 $37,151 46 $43,953 54
Network 0 0 $4,758 100 $ 4,758 100 $0 0
Total $412,990 29 $1,024,620 71 $851,997 60 $585,613 40
Best practice allocation should use actual distributed and mainframe costsIn this example, the mainframe allocation decreased from 71% to 40%
Total $1,437,610 Total $1,437,610Based on IBM analysis of customer data. Individual customer results will vary.
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Smarter Computing: System z Analyst Summit
Consolidated 140 HP Intel-architecture servers to a single IBM System z with six Integrated Facility for Linux (IFL) engines
Key applications run in SUSE Linux Enterprise servers, while IBM DB2 databases run on z/OS on the same physical machine
Lead time for server provisioning reduced by 99%
New Linux Virtual Servers deployed for test and development within 20 minutes
BlueCross BlueShield of Minnesota
“Even without factoring in the maintenance and support costs - which would be considerable for a large estate of physical servers - we found that running a virtualized Linux environment on System z would be somewhere between 30 and 50 percent less expensive than a distributed architecture.”
- Ted Mansk, IT Director, BCBSM
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By consolidating workloads onto its System z mainframes’virtualized infrastructure, Nationwide replaced hundreds of stand-alone servers running several different operating systems
$ 15M cost savingsover three years
85% – 90% server utilization
80% reduction in environmental costs
Nationwide Insurance
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Consolidated 200 Sun servers down to 1 IBM System z10 running Red Hat Enterprise Linux
Reduced data center footprint by 30%, heat output by 33%, and power consumption by close to 40%
Only one administrator needed per 200 virtual servers
New environments are deployed in minutes, not days
Bank of New Zealand
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When Baldor acquired a major competitor, it needed to integrate hundreds of servers into its existing infrastructure
Baldor consolidated to SAP Business Suite applications, hosted on 70 virtual machines running Linux on an IBM z10 EC server and migrated data to an IBM System Storage DS8100 platform
Eliminated hundreds of servers
Cut energy costs by 60%
Cut IT costs by 50%
Baldor Electric Company
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Smarter Computing …..
Use of hardware and software technologies to increase operational efficiencies and
optimize workload performance while reducing Total Cost of Ownership
Doing More for LessDoing More for Less